Canada's resource heavy index looked set to open lower on Monday, as recent high oil prices added to worries about company earnings and global growth. G20 ministers asked Europe to commit more money to fight the debt crisis before seeking their help.
The Canadian dollar fell almost half a cent to 99.64 cents U.S.
Among Canadian stocks to watch this morning, Gran Tierra Energy Inc. said its quarterly profit more than doubled, helped by higher production.
Rival oil and gas company Bowood Energy Inc. said it is looking at strategic alternatives, including a sale of its assets.
Meantime, U.S. index futures were down with about half an hour before markets open, suggesting that stocks will fall at the start of trading. Futures for the Dow Jones industrial average were down 45 points, or 0.4%, to 12,916. Futures for the broader S&P 500 were down 6.7 points or 0.5%, to 1,356.60, and Nasdaq futures fell 10.50 points, or 0.4%, to 2,591.
Although the Dow fell slightly on Friday, the S&P 500 hit its highest level since 2008, amid upbeat signals on the U.S. economy and relatively little dour news out of Europe.
However, there are concerns now that the International Monetary Fund might not have the necessary financial firepower to deal with additional European emergencies. At a weekend meeting, the Group of 20 failed to come to an agreement to boost funding for the IMF, with some participants arguing that European leaders must first increase the size of their own bailout funds.
In Europe, the U.K.'s FTSE 100 fell 0.9% and Germany's DAX index fell 1.1% in afternoon trading. In Asia, Japan's Nikkei 225 fell 0.1% in overnight trading.
High oil prices are also starting to weigh on stocks. Crude oil recently hit its highest level since May, with tensions over Iran's nuclear ambitions threatening to choke off exports from the oil producer. High oil prices threaten some consumer discretionary stocks and transport stocks.
However, on Monday, oil did settle back slightly, falling to $108.52 U.S. a barrel in New York, down 1.1%
Gold also retreated from recent highs, falling to $1,768 U.S. an ounce, down 0.5%
